Imposition of penalty u/s 271(1)(c) on highly debatable issue is unsustainable

Nagarjuna Oil Corporation Ltd Vs ACIT (ITAT Chennai) ITAT Chennai held that levy of penalty u/s. 271(1)(c) of the Income Tax Act alleging furnishing of inaccurate particulars of income unsustainable as the matter is highly debatable. Facts- The only common issue here is with regard to confirming the levy of penalty u/s.271(1)(c) of the Income Tax Act relating to interest income claimed by assessee, on the pre-commencement of business period, as capital receipt as against assessed by AO as revenue receipt. According to AO, the assessee has concealed the particulars of income and also furnished ...